A refinery project backed by Nigerian billionaire Aliko Dangote, valued at roughly Sh2.2 trillion, is expected to break ground in Lamu, Kenya, before the end of 2026. The proposed 700,000-barrel-per-day facility would become Kenya’s largest private-sector investment and anchor a new phase of industrial development along the coast.
Once operational, the refinery is projected to create about 60,000 jobs spanning construction, engineering, logistics, manufacturing and energy, while significantly expanding Kenya’s petroleum-processing capacity and strengthening its ambitions to become a regional energy and logistics hub. It would be Dangote’s second major refinery after the 650,000-barrel-per-day facility in Lekki, Nigeria, which began operations in January 2024.
President William Ruto has placed the project among the major investments the government is seeking to facilitate, tasking Deputy President Kithure Kindiki with chairing a committee to coordinate implementation with private investors and employers. “I have asked the Deputy President, Kithure Kindiki, to chair the government committee that is going to work with private investors and employers for what will be one of the largest investments in our country,” Ruto said, adding that preparations had advanced enough to raise expectations of construction starting before year’s end.
Lamu’s location was chosen for its access to the deep-water Lamu Port and proximity to the LAPSSET Corridor, the regional infrastructure network linking Kenya’s coast to Ethiopia and South Sudan. Beyond Kenya, the refinery could reshape the wider East African fuel market, potentially shortening supply chains for Uganda, Tanzania, Rwanda, Burundi, South Sudan, eastern DRC and parts of Ethiopia, all of which currently rely heavily on imported refined products from Asia, the Middle East and Europe.
Source: the-star.co.ke